Today the focus is on German consumers, rising oil prices, and the Fed’s dovish statement.
The US Federal Budget will be released. Previous: -430.0B. If the budget is lower than the previous record, the USD could receive negative pressure.
Assets to trade: USD/CHF, USD/JPY, USD/NOK
British trade minister Liz Truss said on Thursday she would urgently seek a meeting with U.S. Trade Representative nominee Katherine Tai to discuss the removal of punitive tariffs. Affects GBP
Eurozone economic sentiment rose more than expected in February. Affects EUR
Oil prices extended gains for a fourth session on Thursday to reach the highest levels in more than 13 months. Affects Brent
The dollar index dropped on Thursday, as currency markets were boosted by dovish signals from the U.S. Federal Reserve. Affects USD
German consumer morale brightened more than expected heading into March as shoppers in Europe’s largest economy became more upbeat that a lockdown to contain the COVID-19 pandemic could be eased soon. Affects EUR
The dollar has been on a rollercoaster lately. Giving hope to the currency is President Biden’s relief plan and anticipation of renewed trade negotiations, while crude oil hiccups from winter weather and pandemic chaos continue to drag it down. Against the decline in auto manufacturing in Japan due to a chip shortage.
The pair has reached new highs and could roll into a pullback in the coming days.
It’s trend is upward but prices may test the upward sloping support line.
The current uptrend is losing momentum as it nears the downward resistance line.